Department of Justicehttp://www.businessinsider.com/category/department-of-justice
en-usTue, 03 Mar 2015 14:25:07 -0500Tue, 03 Mar 2015 14:25:07 -0500The latest news on Department of Justice from Business Insiderhttp://static3.businessinsider.com/assets/images/bilogo-250x36-wide-rev.pngBusiness Insiderhttp://www.businessinsider.com
http://www.businessinsider.com/department-of-justice-report-on-2015-3The Justice Department is issuing a report on racial bias in Ferguson, and it's going to be brutalhttp://www.businessinsider.com/department-of-justice-report-on-2015-3
Mon, 02 Mar 2015 11:38:35 -0500Harrison Jacobs
<p class="p1"><span class="s1"><img style="float:right;" src="http://static5.businessinsider.com/image/54f48e8beab8ea120d6d9920-1200-924/ferguson-48.jpg" border="0" alt="ferguson">More than six months after Ferguson, Missouri erupted in protests over the death of unarmed teenager Michael Brown by police officer Darren Wilson, the Department of Justice is set to release a report criticizing the Ferguson, Missouri police department for racial profiling.</span></p>
<p class="p1"><span class="s1">The report <a href="http://mobile.nytimes.com/2015/03/02/us/justice-department-report-to-fault-police-in-ferguson.html?_r=1&amp;referrer=">accuses the department of conducting discriminatory traffic stops of African-Americans and ticketing and arresting African-Americans disproportionately</a>, according to the New York Times.</span></p>
<p class="p1"><span class="s1">As a result of the report, the Justice Department could sue the Ferguson Police Department on civil rights charges or pressure the city to agree to a settlement.</span></p>
<p class="p1"><span class="s1">Despite the Justice Department’s broader report, it is expected that the department’s separate investigation of the shooting <a href="http://www.csmonitor.com/USA/Latest-News-Wires/2015/0121/Feds-finish-investigation-file-no-charges-against-Darren-Wilson-video">will not result in civil rights charges on Darren Wilson</a>.</span></p>
<p class="p1"><span class="s1">The statistics behind the DOJ’s report are stark. From The New York Times:&nbsp;</span></p>
<p class="p2" style="padding-left: 30px;"><span class="s1">Blacks accounted for 86% of traffic stops in 2013 but make up 63% of the population, according to the most recent data published by the Missouri attorney general. And once they were stopped, black drivers were twice as likely to be searched, even though searches of white drivers were more likely to turn up contraband.</span></p>
<p class="p2"><span class="s1">Fines resulting from the traffic stops have become the city’s second-largest source of revenue after sales tax. The DOJ contends that the revenue has created a financial incentive to continue such discriminatory practices.</span><span style="line-height: 1.5em;">&nbsp;</span></p>
<p class="p2"><span class="s1">The full report could be released as soon as this week.</span></p><p><a href="http://www.businessinsider.com/department-of-justice-report-on-2015-3#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/drunk-driving-checkpoint-regulation-hack-2015-2">A lawyer in Florida has come up with an ingenious way for drivers to evade drunken-driving checkpoints</a></p> http://www.businessinsider.com/r-doj-seeks-felony-pleas-by-big-banks-in-foreign-currency-inquiry-nyt-2015-2Report: The DOJ wants guilty pleas from big banks who allegedly manipulated foreign currency priceshttp://www.businessinsider.com/r-doj-seeks-felony-pleas-by-big-banks-in-foreign-currency-inquiry-nyt-2015-2
Tue, 10 Feb 2015 02:17:49 -0500
<p><img style="float:right;" src="http://static2.businessinsider.com/image/54d9b0666da811d103e56250-480-/eric-holder-getty-7.jpg" border="0" alt="eric holder getty" width="480"></p><p>(Reuters) - The U.S. Department of Justice is pushing some big banks to plead guilty to criminal charges that they manipulated the prices of foreign currencies, the New York Times reported, citing lawyers briefed on the matter.</p>
<p>In the final stages of a long-running investigation into corruption in the world's largest financial market, federal prosecutors have recently informed Barclays, JPMorgan Chase, the Royal Bank of Scotland and Citigroup that they must enter guilty pleas to settle the cases, the newspaper reported.</p>
<p>The pleas would be likely to carry a symbolic stigma, if limited actual fallout, in handing felony convictions to some of the world's biggest banks, the newspaper said. (http://nyti.ms/1DVNiVe)</p>
<p>Representatives of Citigroup, JP Morgan, RBS and Barclays did not respond to emails seeking comment on the report. Reuters could not immediately reach the DoJ for comment outside regular U.S. business hours.</p>
<p>Last November, regulators fined six major banks a total of $4.3 billion for failing to stop traders from trying to manipulate the foreign exchange market, following a yearlong global investigation.</p>
<p>Authorities accused dealers of sharing confidential information about client orders and coordinating trades to boost their own profits. The foreign exchange benchmark they allegedly manipulated is used by asset managers and corporate treasurers to value their holdings.</p>
<p>(Reporting by Supriya Kurane in Bengaluru; Editing by Gopakumar Warrier)</p><p><a href="http://www.businessinsider.com/r-doj-seeks-felony-pleas-by-big-banks-in-foreign-currency-inquiry-nyt-2015-2#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/flying-car-aeromobil-flies-430-miles-2014-12">This Flying Car Is Real And It Can Fly 430 Miles On A Full Tank</a></p> http://www.businessinsider.com/six-bosnian-natives-are-facing-charges-in-the-us-for-providing-money-guns-to-terror-groups-2015-2Six Bosnian natives are facing charges in the US for providing money, guns to terror groupshttp://www.businessinsider.com/six-bosnian-natives-are-facing-charges-in-the-us-for-providing-money-guns-to-terror-groups-2015-2
Fri, 06 Feb 2015 21:48:00 -0500Fiona Ortiz
<p><img style="float:right;" src="http://static2.businessinsider.com/image/54d57c246da811e028ef1d08-1200-924/us-department-of-justice.jpg" border="0" alt="U.S. Department of Justice"></p><p>CHICAGO (Reuters) - Six people have been charged with providing money and equipment including U.S. military uniforms to support groups such as al Qaeda, Nusra Front and Islamic State in&nbsp;Syria&nbsp;and&nbsp;Iraq, the&nbsp;U.S. Justice Department&nbsp;said on Friday.</p>
<p>The six are Bosnian natives living in&nbsp;Missouri,&nbsp;Illinois&nbsp;and&nbsp;New York. Five of them were arrested in the&nbsp;United States&nbsp;and charged with conspiring to provide material support and resources to terrorists. The sixth person is overseas, the department said in a statement.</p>
<p>Members of the group conspired to provide money and equipment - including U.S. military uniforms, combat boots, tactical gear, military surplus goods and firearms accessories - to be used to commit crimes outside the&nbsp;United States, according to the indictment released by Justice.</p>
<p>It said people in&nbsp;Turkey&nbsp;and&nbsp;Saudi Arabia&nbsp;acted as third-party intermediaries who received the money and property from the defendants in the&nbsp;United States&nbsp;and transferred it to militants fighting with groups in&nbsp;Syria,&nbsp;Iraq&nbsp;and elsewhere.</p>
<p>It identified the defendants as&nbsp;Ramiz Zijad Hodzic, 40, his wife,&nbsp;Sedina Unkic Hodzic, 35, and&nbsp;Armin Harcevic, 37, all of&nbsp;St. Louis County,&nbsp;Missouri;&nbsp;Nihad Rosic, 26, of Utica,&nbsp;New York; Mediha Medy Salkicevic, 34 of Schiller Park,Illinois; and&nbsp;Jasminka Ramic, 42, of Rockford,&nbsp;Illinois.&nbsp;</p>
<p>All were charged with conspiring to provide material support and resources to terrorists, and with providing material support to terrorists.&nbsp;Ramiz Zijad Hodzic&nbsp;and&nbsp;Nihad Rosic&nbsp;also were accused of conspiring to kill and maim persons in a foreign country, the department said.</p>
<p>"Today's charges and arrests underscore our resolve to identify, thwart, and hold accountable individuals within theUnited States&nbsp;who seek to provide material support to terrorists and terrorist organizations operating in&nbsp;Syria&nbsp;andIraq," said Assistant Attorney General&nbsp;Carlin.</p>
<p>&nbsp;(Editing by Doina Chiacu)</p><p><a href="http://www.businessinsider.com/six-bosnian-natives-are-facing-charges-in-the-us-for-providing-money-guns-to-terror-groups-2015-2#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/new-york-times-reports-david-petraeus-may-be-charged-with-leaking-classified-information-2015-1REPORT: David Petraeus May Be Charged With Leaking Classified Information To His Former Mistresshttp://www.businessinsider.com/new-york-times-reports-david-petraeus-may-be-charged-with-leaking-classified-information-2015-1
Fri, 09 Jan 2015 18:38:00 -0500Armin Rosen
<p><img style="float:right;" src="http://static1.businessinsider.com/image/50a1bd73eab8ea035b000015-1200-858/ap587992865021.jpg" border="0" alt="david petraeus paula broadwell"></p><p>Former General David Petraeus's 2012 adultery scandal may end up costing him more than just his job as CIA director.</p>
<p>Citing anonymous government officials, the New York Times is reporting that federal prosecutors with the FBI and the Department of Justice have <a href="http://www.nytimes.com/2015/01/10/us/politics/prosecutors-said-to-recommend-charges-against-former-gen-david-petraeus.html?_r=0">recommended that Petraeus be charged with a felony</a> for providing classified information to his mistress <a href="http://www.amazon.com/All-In-Education-General-Petraeus/dp/B00DPO3V90">and biographer</a>, Paula Broadwell, who was also an Army Reserve officer.</p>
<p>Petraeus has been under investigation for unauthorized leaks related to the affair and Broadwell's book since the scandal broke. Holder was supposed to decide on charging Petraeus by the end of last year. But the legal process has unfolded slowly, with the retired general showing "<span style="line-height: 1.5em;">no interest in a plea deal that would spare him an embarrassing trial," according to the Times.</span></p>
<p><span>The charges would represent a stunning turnabout for the celebrated former US commander in Iraq and Afghanistan and one of the military's major proponents of counter-insurgency doctrine. As the Times puts it, Attorney General Eric Holder now has to decide "</span><span style="line-height: 1.5em;">whether to seek an indictment that could send the pre-eminent military officer of his generation to prison."</span></p>
<p><span style="line-height: 1.5em;">Petraeus abruptly resigned as CIA director on Nov. 10, 2012 after admitting that he had carried on an extra-marital affair with Broadwell the year before. For someone in a less sensitive position in government, such marital indiscretions aren't necessarily a career-ender.</span></p>
<p><span style="line-height: 1.5em;"> But for the director of the US's top intelligence agency it's nothing less than a national security risk. The affair could have provided potential blackmail fodder to foreign intelligence agencies while raising the possibility of just the kind of security breach Petraeus may now be charged with.&nbsp;</span><span style="line-height: 1.5em;">After all, once classified information is in the hands of a single unauthorized individual, it can leak even further, the people beyond the intended recipient. And as CIA director, Petraeus security clearance was virtually limitless.</span></p>
<p><span style="line-height: 1.5em;">The Petraeus scandal quickly took on a tawdry aspect as news of the affair broke in the days after President Barack Obama's re-election. It turns out the adultery was exposed because Jill Kelley, a friend of Petraeus who lived near US Central Command headquarters in Tampa, Florida and was active in local military support circles, had allegedly received threatening emails from a jealous Broadwell that she later reported to the FBI. The resulting investigation uncovered Petraeus's affair with Broadwell and ended the retired general's career in government.</span></p>
<p><span style="line-height: 1.5em;">But the possible charges shows that there's a deeply serious side to this soap opera, with a sitting CIA director possibly violating his security clearance, thus proving that the affair had the potential to endanger US national security.</span></p>
<p><span style="line-height: 1.5em;">Business Insider reached out to Robert Barnett, the lawyer Petraeus hired in the aftermath of his resignation, for comment. He declined to comment.</span></p>
<p><em><span style="line-height: 1.5em;">&nbsp;</span></em></p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/the-us-armys-next-generation-pistol-2015-1" >The US Army is looking to develop a next-generation pistol</a></strong></p>
<p><a href="http://www.businessinsider.com/new-york-times-reports-david-petraeus-may-be-charged-with-leaking-classified-information-2015-1#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/doj-encrypted-imessages-will-cause-a-child-to-die-2014-11Feds To Apple: If We Can't Read iMessages, A Child Will Die (AAPL)http://www.businessinsider.com/doj-encrypted-imessages-will-cause-a-child-to-die-2014-11
Wed, 19 Nov 2014 17:20:00 -0500Sam Colt
<p><img style="float:right;" src="http://static4.businessinsider.com/image/546d0e87ecad04857ef5f11f-480-/iphone-6-116.jpg" border="0" alt="iphone 6" width="480"></p><p>The Department of Justice told Apple executives that a child would die as a result of the company's new iMessage encryption, <a href="http://online.wsj.com/articles/apple-and-others-encrypt-phones-fueling-government-standoff-1416367801?mod=LS1">reports the Wall Street Journal</a>.</p>
<p>iMessages come encrypted on your iPhone in iOS 8. That means that without the passcode to your phone, law enforcement can't access your text messages, even with a court-ordered warrant.</p>
<p>Apple's move to encrypt iMessages comes after a summer of privacy complaints that peaked with <a href="http://www.businessinsider.com/4chan-nude-photo-leak-2014-8">the iCloud hacking scandal</a>&nbsp;which exposed nude celebrity photos.</p>
<p>In September Apple CEO Tim Cook <a href="http://www.businessinsider.com/tim-cook-published-a-letter-on-apple-privacy-policies-2014-9">published a letter</a> outlining Apple's new privacy policy.&nbsp;</p>
<p>"W<span>e don’t read your email or your messages to get information to market to you," said Cook.</span><span><br><br>Apple was reportedly offended by the DOJ's nightmare scenario. The meeting was unproductive for both parties.</span></p>
<p><span>Cook also spoke specifically to Apple's policy on government data requests in his letter.</span></p>
<p><span>"Finally, I&nbsp;<span>want to be absolutely clear that we have never worked with any government agency from any country to create a backdoor in any of our products or services," said Cook. "We have also never allowed access to our servers. And we never will."</span><span><br></span></span></p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/the-apple-watch-has-a-major-flaw-2014-11" >A Developer Told Us About A Major Flaw With The Apple Watch</a></strong></p>
<p><a href="http://www.businessinsider.com/doj-encrypted-imessages-will-cause-a-child-to-die-2014-11#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/us-spy-program-targets-americans-cellphones-2014-11REPORT: US Spy Program Uses Airplanes To Collect American Cell Phone Datahttp://www.businessinsider.com/us-spy-program-targets-americans-cellphones-2014-11
Thu, 13 Nov 2014 18:13:00 -0500Sam Colt
<p><img style="float:right;" src="http://static2.businessinsider.com/image/5465341f6da8111d053f3295-480-/manhattan-fifth-avenue-people-walking-crowd-crowded-3.jpg" border="0" alt="manhattan fifth avenue people walking crowd crowded" width="480"></p><p>The US Department of Justice has been using airplanes to collect Americans' cell phone data, <a href="http://online.wsj.com/articles/americans-cellphones-targeted-in-secret-u-s-spy-program-1415917533?tesla=y&amp;mg=reno64-wsj">reports The Wall Street Journal's&nbsp;Devlin Barrett</a>.</p>
<p>The surveillance program, which is run by the US Marshals Service under the DOJ, has reportedly been in effect since 2007.</p>
<p>Officials have been using portable cell towers, known as "dirtboxes," on small planes to collect identity and location information on cell phone users.</p>
<p>Those Cessna aircrafts fly from at least five airports near major cities, effectively allowing them to surveil most Americans.</p>
<p>It's unclear how often the Marshals Service has been going on these surveillance missions, but the Wall Street Journal's sources said they happen "on a regular basis."</p>
<p>The DOJ refused to confirm or deny the Journal's report, citing concerns over revealing US surveillance practices to those who might want to evade them.</p>
<p>Cellphones are constantly in communication with nearby cell towers.</p>
<p>The boxes used by the program allow planes to pose as the nearest cell phone tower, which prompts cell phones under surveillance to disclose their location and identity information, even if a legitimate tower is closer than the plane overhead.</p>
<p>The dirtboxes also have the ability to interrupt calls, though officials have reportedly tried to mitigate the harmful consequences of that function.</p>
<p>Using this practice, US officials can essentially locate somebody down to the room they're in.</p>
<p>The Journal's sources say that once the Marshals Service has located their target, the system "lets go" of other users' data, though it's not clear what happens to that data.&nbsp;<span style="line-height: 1.5em;">&nbsp;</span></p><p><strong>SEE ALSO:&nbsp;<a href="http://www.ibtimes.com/reporters/christopher-harress#ixzz3IzaaWXFW" >Here's The US Spy Plane And The Drone That Will Likely Be Used To Spy On ISIS</a></strong></p>
<p><a href="http://www.businessinsider.com/us-spy-program-targets-americans-cellphones-2014-11#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/election-2014-obama-next-attorney-general-2014-11One Of Obama's Top Remaining Priorities Will Be Shaped By Tonight's Electionhttp://www.businessinsider.com/election-2014-obama-next-attorney-general-2014-11
Tue, 04 Nov 2014 16:55:59 -0500Hunter Walker
<p><img style="float:right;" src="http://static2.businessinsider.com/image/5459478469bedd37625b97bc-600-/obama-394.jpg" border="0" alt="obama" width="600"></p><p>After voters head to the polls on Tuesday, two of the top items on President Barack Obama's agenda are appointing a new attorney general and taking executive action on immigration. And on both fronts, Obama is facing pressure from Latino leaders.&nbsp;</p>
<p>There have been four people regularly cited as top candidates for the attorney general job in the wake of Eric Holder's decision to step down from the post — <a href="http://www.nydailynews.com/news/politics/brooklyn-u-s-attorney-loretta-lynch-ag-nod-article-1.1995814">Brooklyn U.S. Attorney Loretta Lynch</a>, <a href="http://www.motherjones.com/politics/2014/10/tom-perez-attorney-general-obama">Labor Secretary Tom Perez</a>, <a href="http://nypost.com/2014/11/04/alejandro-mayorkas-leading-contender-to-be-next-us-attorney-general/">deputy secretary for the Department of Homeland Security Alejandro Mayorkas</a>, and <a href="http://www.businessinsider.com/donald-verrilli-eric-holder-attorney-general-ag-2014-9">Solicitor General Donald Verrilli</a>.&nbsp;</p>
<p>Influential Latino leaders have increasingly been lining up to express support for Perez, whose parents emigrated from the Dominican Republic, to get the nomination. Last week, the <a href="http://www.politico.com/story/2014/10/tom-perez-hispanic-caucus-endorsement-112259.html">Congressional Hispanic Caucus announced their endorsement for Perez</a>. The National Hispanic Leadership Agenda&nbsp;<a href="http://www.politico.com/story/2014/10/barack-obama-tom-perez-latinos-attorney-general-111955.html">has also thrown its weight behind Perez</a>.&nbsp;</p>
<p>At the same time, there is what CBS News described as "festering resentment" among Latino voters and activists over Obama's decision to delay immigration reform until after the election that may play a role in the president's pick for attorney general.</p>
<p>One political consultant who has worked with major Latino organizations told Business Insider they believe "pretty soon after the election the president is going to do something dramatic on immigration."</p>
<p>"My guess is, it's a reset the minute he does that," the consultant said, referring to Obama's strained relationship with the Latino community. "If&nbsp;that's what happens then, there's no need for appeasement."</p>
<p>However, there's increasing <a href="http://www.businessinsider.com/senate-control-runoff-elections-georgia-louisiana-2014-10">speculation the election will go into overtime,</a> and the Senate majority may be decided by runoffs in Georgia and Louisiana. Obama's initial decision to delay immigration reform has been widely attributed to a desire to pressure Democratic candidates, including Louisiana's incumbent Sen. Mary Landrieu, who feared backing him on the issue would hurt their chances.</p>
<p>A runoff in Louisiana, which would be held next month, or Georgia, which would take place in January, could force Obama to further push back an executive order for immigration reform. In that case, or if Obama's immigration action is viewed as insufficient by Latino leaders and activists, the consultant suggested it could push the president to nominate Perez or Mayorkas, who is Cuban-American.&nbsp;</p>
<p>"If he does something that is more tepid or he delays it because of a runoff ...&nbsp;then people are going to be in a really bad mood and the appointment of a Latino attorney general might be more important symbolically," the consultant explained.&nbsp;</p>
<p>While both Mayorkas and Perez could help Obama appeal to Latino voters, Perez has drawn far more support from Latino leaders. In addition to the endorsements, several prominent Latino politicians are publicly praising Perez. Last week, Housing and Urban Development Secretary Julian Castro told Business Insider Perez would be an "outstanding" choice. &nbsp;</p>
<p>"Throughout his career, Secretary Perez has distinguished himself as an extraordinary public servant. He's been a tireless champion for fairness and has done great work to level the playing field for all Americans," Castro said. "I'm proud to call him a colleague and a friend. He is an outstanding Secretary of Labor, and I'm sure he would be a great Attorney General if selected. "</p>
<p><img style="float:right;" src="http://static4.businessinsider.com/image/545948c269bedddb69234011-1200-924/barack-obama-thomas-perez.jpg" border="0" alt="Barack Obama Thomas Perez " width="600">Rep. Xavier Becerra similarly said Perez would bring "tremendous skills" to the Department of Justice in a conversation with Business Insider. Becerra also noted that, as Secretary of Labor and former&nbsp;Assistant United States Attorney General&nbsp;for the&nbsp;Civil Rights Division, Perez already survived the Senate confirmation process twice, which could make him an appealing option if, as is widely expected, Obama has to get his nominee through a Republican Senate majority.</p>
<p>"You're talking about a guy who's been twice confirmed in the Senate now, who has served in two very important departments in the federal government, who has excelled and shown himself to be eminently qualified as an attorney," Becerra said.</p>
<p>For its part, the Obama administration seems to be holding its cards close to the vest. White House spokesman Eric Schultz declined to comment when Business Insider asked him whether the immigration reform issue could affect Obama's deliberations about a new attorney general.&nbsp;</p>
<p>"We don't have any personnel updates, and are certainly not going to speculate on any decisions before the President makes them," Schultz said.&nbsp;</p><p><a href="http://www.businessinsider.com/election-2014-obama-next-attorney-general-2014-11#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/doj-probing-jpm-forex-2014-11The DOJ Is Conducting A Criminal Investigation Into JPMorgan's Forex Tradinghttp://www.businessinsider.com/doj-probing-jpm-forex-2014-11
Mon, 03 Nov 2014 17:31:00 -0500Linette Lopez
<p><img style="float:right;" src="http://static1.businessinsider.com/image/5458026c6bb3f74a2c59ce5a-1200-924/jamie-dimon-77.jpg" border="0" alt="jamie dimon"></p><p>The Department of Justice is conducting a criminal probe on JPMorgan Chase's foreign exchange trading.</p>
<p>The bank gave notice of this investigation in a government filing released Monday.</p>
<p>Here's what it says:</p>
<p style="padding-left: 30px;"><strong>DOJ is conducting a</strong><br><strong>criminal investigation,</strong> and various regulatory and civil enforcement&nbsp;authorities, including US banking regulators, the Commodity Futures&nbsp;Trading Commission (“CFTC”), the UK Financial Conduct Authority&nbsp;(the “FCA”) and other foreign government authorities, are conducting&nbsp;civil investigations, regarding the Firm’s foreign exchange ("FX")&nbsp;trading business.<strong> These investigations are focused on the Firm's spot&nbsp;FX trading activities as well as controls applicable to those activities.</strong>&nbsp;The Firm continues to cooperate with these investigations and is&nbsp;currently engaged in discussions with DOJ, and various regulatory and&nbsp;civil enforcement authorities, about resolving their respective&nbsp;investigations with respect to the Firm. There is no assurance that such&nbsp;discussions will result in settlements.</p>
<p style="padding-left: 30px;">Since November 2013, a number of class actions have been filed in the&nbsp;United States District Court for the Southern District of New York&nbsp;against a number of foreign exchange dealers, including the Firm, for<br>alleged violations of federal and state antitrust laws and unjust&nbsp;enrichment based on an alleged conspiracy to manipulate foreign&nbsp;exchange rates reported on the WM/Reuters service. In March 2014,<br>plaintiffs filed a consolidated amended class action.</p>
<p>Elsewhere in the filing the bank disclosed that over the past few months there had been a heightened willingness among regulators to bring criminal charges against banks in general. It said that these investigations had "significant collateral&nbsp;consequences" to banks, including losing customers or getting banned from being able to sell certain products.</p>
<p>They're not great for stock prices either.</p>
<p>JPMorgan also disclosed that its estimated losses resulting from legal proceedings could total between $0 and $5.9 billion as of last Sept. 20. However, in certain cases the firm acknowledges that it can't estimate how much it could lose.</p><p><a href="http://www.businessinsider.com/doj-probing-jpm-forex-2014-11#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/here-are-the-nazis-who-got-social-security-2014-10Meet The Nazis Who Received Social Security Payments After Being Deported From The UShttp://www.businessinsider.com/here-are-the-nazis-who-got-social-security-2014-10
Mon, 20 Oct 2014 17:22:00 -0400
<p><img style="float:right;" src="http://static1.businessinsider.com/image/544514066bb3f7b9177d5fb3-840-1292/martin hartmann nazi social security.jpg" border="0" alt="Martin Hartmann Nazi Social Security"></p><p>Since 1979, at least 38 of 66 suspected Nazi war criminals and SS guards forced out of the United States collected millions of dollars in American Social Security payments, an Associated Press investigation has found.</p>
<p>Here are brief profiles of seven of them:</p>
<h3>Martin Hartmann</h3>
<p>Hartmann is one of the most recent suspects to leave the US.</p>
<p>He volunteered for the SS in 1943 and was assigned to one of the Death's Head battalions. Those were the units that ran the Third Reich's system of death and concentration camps.</p>
<p>He served as a guard at the Sachsenhausen concentration camp outside Berlin.</p>
<p>He was stripped of his U.S. citizenship in 2007 after reaching an agreement with the Justice Department. In the agreement, he admitted to his Nazi past even though records obtained by the AP showed he disclosed his SS service to American authorities before he entered the United States.</p>
<p>Hartmann, 95, lives in Berlin.</p>
<h3>Jakob Denzinger</h3>
<p>In 1942, at age 18, Denzinger began serving in a Death's Head unit. He was posted at several camps, including the Auschwitz death camp complex in occupied Poland.</p>
<p>He settled in Ohio after the war and became a successful plastics industry executive.</p>
<p>Years later, the Justice Department uncovered his past.</p>
<p>In 1989, as US prosecutors prepared their case to strip Denzinger of his citizenship, he fled to Germany. He later moved to Croatia.</p>
<p>Denzinger, 90, refused to discuss his past with an AP reporter. "I'm not interested," he said.</p>
<h3>Martin Bartesch</h3>
<p><span style="line-height: 1.5em;">Bartesch was working as an apartment building janitor when US authorities uncovered incriminating evidence: As a guard at the Mauthausen concentration camp in Austria, Bartesch had shot and killed a French Jew.</span></p>
<p>Bartesch feared "financial ruin," according to his family, who denied he had done anything wrong at Mauthausen. He signed an agreement to leave the US.</p>
<p>He traveled to Austria in 1987 on a valid passport. Two days after landing, under the terms of the deal, his US citizenship was revoked.</p>
<p>The US refused the Austrian government's demands to take him back. The attorney general at the time, Edwin Meese, eventually apologized to Austria.</p>
<p><img class="float_left" src="http://static5.businessinsider.com/image/54451500ecad04f0627efb82-840-1167/arthur rudolph german rocket scientist nazi.jpg" border="0" alt="Arthur Rudolph German rocket scientist Nazi"></p>
<h3>Arthur Rudolph</h3>
<p>Rudolph, one of the Germany's most prominent rocket scientists, was brought to the US after World War II because of his technical skills.</p>
<p>But Rudolph signed a settlement agreement with the US in 1983 following an investigation into his use of slave laborers at a Nazi rocket factory.</p>
<p>Rudolph traveled on his US passport to West Germany in 1984. Then he went to the US General Consulate in Hamburg and renounced his citizenship.</p>
<p>The West German government protested, but Rudolph remained there.</p>
<p>He was eventually granted German citizenship and collected US Social Security benefits until his death in 1996.</p>
<h3>John Avdzej</h3>
<p>The Nazis installed Avdzej as a regional mayor in occupied Belorussia, where he aided the Germans in the arrest and execution of thousands of Jews.</p>
<p>When he immigrated to the US, Avdzej said he'd been a farmer and tradesman in Poland during the war.</p>
<p>But when the Justice Department uncovered evidence about his role as a Nazi collaborator, Avdzej agreed to leave and renounce his US citizenship.</p>
<p>Embedded in the agreement was a provision that stated "there is no basis under US law for limiting in any way Avdzej's receipt of Social Security benefits."</p>
<p>Avdzej arrived in West Germany in 1984. The West German government protested, but he stayed. He died in 1998 at 93.</p>
<h3>Wasyl Lytwyn</h3>
<p>Lytwyn served in a Nazi SS unit that took part in the destruction of the Warsaw Ghetto in 1943 — an assault that killed as many as 13,000 Jews.</p>
<p>But when he immigrated to the US in 1957, he denied any affiliation with the SS.</p>
<p>He found work as a shipping clerk in Chicago.</p>
<p>Lytwyn agreed to leave the United States in 1995 after he admitted that he concealed his SS service. The settlement agreement stated his Social Security benefits would not be affected.</p>
<p>Lytwyn, 93, is believed to living in Ukraine.</p>
<h3>Peter Mueller</h3>
<p>Peter Mueller was born in Yugoslavia but his service as a Nazi SS guard won him German citizenship.</p>
<p>Mueller immigrated to the US in 1956 and settled in Skokie, Illinois.</p>
<p>Then the Justice Department caught up with him.</p>
<p>Mueller admitted he served as an SS guard in the Natzweiller concentration camp in France, watching over prisoners who worked in a stone quarry and in an underground mine.</p>
<p>He voluntarily returned to Germany 1994. Mueller, 90, lives in a nursing home in Worms, Germany, according to family members.</p>
<p>___</p>
<p>Source: Investigative case files, court and government records, historical documents, and AP research and interviews.</p>
<div class="nc_footer">
<p>Copyright (2014) Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.</p>
</div>
<p><img class="nc_pixel" src="https://pixel.newscred.com/px.gif?key=YXJ0aWNsZT1hMjU3ZjZiOTNkODM5ZjM2NzgzYWE5ZDQ5MTQ5YTllMSZub25jZT01MjFmNzU3Mi03YjI1LTQ5YjctOGRhNC05ZmM3NmI3OTU2YjgmcHVibGlzaGVyPTczMGViODZhYjU5ZjBkNDE5MjZhYzY1YjAxZjgzZTJm" border="0" alt="" width="1" height="1"></p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/dozens-of-nazis-guards-have-collected-millions-in-us-social-security-2014-10" >Dozens of former Nazis collected millions in Social Security payments</a></strong></p>
<p><a href="http://www.businessinsider.com/here-are-the-nazis-who-got-social-security-2014-10#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/r-number-two-us-justice-department-official-to-step-down-source-2014-10Source Says Number Two U.S. Justice Department Official Plans To Step Downhttp://www.businessinsider.com/r-number-two-us-justice-department-official-to-step-down-source-2014-10
Thu, 16 Oct 2014 17:00:00 -0400Reuters and Hunter Walker
<p><img src="http://static3.businessinsider.com/image/5440301c69bedd3f462688a7-800-/james-cole.jpg" border="0" alt="James Cole" width="800"></p><p>WASHINGTON (Reuters) - The No. 2 official at the U.S. Justice Department, Deputy Attorney General James Cole, is planning to step down from his post, a person familiar with his plans told Reuters on Thursday.</p>
<p>Cole's departure is the latest in a series from top officials at the agency, including Attorney General Eric Holder who last month announced plans to leave the department.</p>
<p>After Holder's announcement, rumors about his replacement centered on two other officials –<a href="http://www.businessinsider.com/wall-street-might-miss-eric-holder-when-hes-gone-2014-9">Labor Secretary Tom Perez</a> and&nbsp;<a href="http://www.businessinsider.com/donald-verrilli-eric-holder-attorney-general-ag-2014-9">US Solicitor General Donald Verrilli</a>. However, on Tuesday, <a href="http://www.bloomberg.com/news/2014-10-14/ruemmler-said-to-emerge-as-obama-favorite-for-justice-job.html">Bloomberg reported</a> former White House Counsel Kathryn Ruemmler had "emerged as President Barack Obama’s preferred candidate."</p>
<p>A Justice Department spokeswoman declined comment to Reuters.</p>
<p>&nbsp;</p>
<p>(Reuters reporting by Aruna Viswanatha; Editing by Susan Heavey)</p><p><a href="http://www.businessinsider.com/r-number-two-us-justice-department-official-to-step-down-source-2014-10#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/r-draft-us-deal-for-swiss-banks-in-tax-row-seeks-total-cooperation-paper-2014-10100 Swiss Banks Are Collaborating With The US To Cut Down On Tax Evasionhttp://www.businessinsider.com/r-draft-us-deal-for-swiss-banks-in-tax-row-seeks-total-cooperation-paper-2014-10
Sat, 11 Oct 2014 12:56:00 -0400
<p><img src="http://static5.businessinsider.com/image/54395c515afbd352538b4567-800-/draft-us-deal-for-swiss-banks-in-tax-row-seeks-total-cooperation-paper.jpg" border="0" alt="People walk past the building of the bank Safra next to the Paradeplatz square with the Swiss Banks Credit Suisse (back C) and UBS (L) in Zurich, April 12, 2013. REUTERS/Michael Buholzer " width="800"></p><p>ZURICH (Reuters) - The U.S. Department of Justice (DOJ) is seeking "total cooperation" from Swiss banks in a draft agreement aimed at allowing the banks to make amends for aiding tax evasion by wealthy Americans, a Swiss newspaper reported on Saturday.</p>
<p>About 100 Swiss banks signed up to work with U.S. authorities at the end of last year in a program brokered by the Swiss government. That followed criminal investigations of roughly a dozen Swiss banks in the United States.</p>
<p>Under the program so-called category two banks - those that have reason to believe they may have committed tax offences - will escape prosecution if they detail their wrongdoing with U.S. clients and pay fines.</p>
<p>These banks have now received a draft non-prosecution agreement from the United States, which would require them to report in full to U.S. authorities any information or knowledge of activity relating to U.S. tax, the Neue Zuercher Zeitung (NZZ) said, citing unnamed banking sources.</p>
<p>These requirements would also apply to parent companies, subsidiaries, management, workers and external advisors, the NZZ reported.</p>
<p>"This total cooperation would, in addition, not only apply with respect to the DOJ and the Internal Revenue Service, but also to anyone, even foreign law enforcement agencies, that the DOJ is supporting in its investigations," the NZZ reported. It said that no end date for this cooperation was given in the draft.</p>
<p>It is also unclear whether the requested information would only need to be handed over when doing so complied with Swiss law, the paper said.</p>
<p>Failure to follow any one of the terms of the agreement would render it void, and the bank could risk prosecution from the DOJ, the NZZ said.</p>
<p>(Reporting by Alice Baghdjian; Editing by Aidan Martindale)</p><p><a href="http://www.businessinsider.com/r-draft-us-deal-for-swiss-banks-in-tax-row-seeks-total-cooperation-paper-2014-10#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/twitter-sues-department-of-justice-2014-10Why Twitter Just Sued The US Governmenthttp://www.businessinsider.com/twitter-sues-department-of-justice-2014-10
Wed, 08 Oct 2014 09:08:00 -0400Stefano Pozzebon
<p><a href="https://twitter.com/twitter/status/519540931461005312" target="_blank"><img style="float:right;" src="http://static1.businessinsider.com/image/54353551ecad04581e06f093-1200-800/rtx15491.jpg" border="0" alt="Twitter vs DOJ">Twitter sued the US government on Tuesday</a><span style="line-height: 1.5em;">.&nbsp;</span></p>
<p>You can read all the technicalities of the lawsuit&nbsp;<a href="https://g.twimg.com/blog/blog/attachments/Complaint.pdf">here</a>, but in short, the micro-blogging site&nbsp;wants to protect its First Amendment right to inform users about the scope of government surveillance.&nbsp;</p>
<p>It is no secret that the government can read your tweets, obviously everyone else can too. But after the Edward Snowden revelations about the amount of data classified by the NSA, tech companies are becoming more and more sensitive to the topic.</p>
<p>In this case, <a href="https://g.twimg.com/blog/blog/attachments/Complaint.pdf">the Twitter lawsuit</a> asks for "relief from prohibitions on its speech.&nbsp;Twitter also explained the decision <a href="https://blog.twitter.com/2014/taking-the-fight-for-transparency-to-court">in a blogpost</a>, written by the vice president of Twitter's legal department, Ben Lee.&nbsp;</p>
<p>Twitter accuses&nbsp;the US government of "engaging in extensive but incomplete speech about the scope of its national security surveillance activities as they pertain to U.S. communications providers, while at the same time prohibiting service providers such as Twitter from providing their own informed perspective as potential recipients of various national security-related requests."</p>
<p>Twitter said that the company has discussed the matter with the government for months. It refers to a meeting with officials from the DOJ and the FBI in January, when they refused to accept the same disclosure limits that the government had offered to Google, Yahoo, and the other companies.</p>
<p>The Department of Justice did not wait long reply: Emily Pierce, a spokesperson at the Department of Justice,<a href="http://www.dailymail.co.uk/news/article-2784083/Twitter-sues-U-S-Justice-Dept-right-reveal-surveillance-requests.html"> spoke to MailOnline </a>and said that they are not new to these sort of complaints: "Earlier this year, the government addressed similar concerns raised in a lawsuit brought by several major tech companies. There, the parties worked collaboratively to allow tech companies to provide broad information on government requests while also protecting national security."</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.thewire.com/national/2014/09/the-fbis-all-powerful-facial-recognition-program-is-fully-operational/380301/#ixzz3FYdcNJP6" >The FBI's Powerful Facial Recognition Program Is Fully Operational</a></strong></p>
<p><a href="http://www.businessinsider.com/twitter-sues-department-of-justice-2014-10#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/wall-street-might-miss-eric-holder-when-hes-gone-2014-9Wall Street Might Miss Eric Holder When He's Gone http://www.businessinsider.com/wall-street-might-miss-eric-holder-when-hes-gone-2014-9
Fri, 26 Sep 2014 16:49:14 -0400Hunter Walker
<p><img src="http://static2.businessinsider.com/image/5425ce926bb3f7424361ed43-800-/barack-obama-eric-holder-7.jpg" border="0" alt="Barack Obama Eric Holder" width="800"></p><p>With Attorney General Eric Holder's departure from Washington, critics say Wall Street is losing someone who has essentially given the industry a pass on the excesses that led to the financial crisis. In another potential wrinkle for Wall Street, two of the leading candidates who could follow in Holder's footsteps both have a history of ruffling feathers in the financial industry.</p>
<p>Critics of Wall Street have slammed Holder for not prosecuting top executives during his time leading the Department of Justice. A Democratic operative who spoke to Business Insider about Holder's time as attorney general called his lack of financial industry prosecutions "bizarre," particularly in light of the fact "this administration entered office during the middle of the worst financial crisis since the great depression."&nbsp;</p>
<p>"He could not have been more of a disappointment in terms of dealing with the issues that led to the collapse of the financial markets and the global economy," the operative said of Holder. "He had an opportunity and, frankly, a responsibility to say there was a whole host of systemically illegal and improper behavior and to go after it."&nbsp;</p>
<p>Holder, whose office did not respond to a request for comment on this story from Business Insider, attempted to address this criticism <a href="http://thehill.com/policy/finance/217110-warren-shelby-agree-on-need-to-prosecute-bank-execs">at a congressional hearing last year</a>. At the hearing, Holder argued it was dangerous to impose overly harsh penalties on leaders of financial institutions because it could have a negative impact on the economy.</p>
<p>“The size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy," Holder said.</p>
<p>However, this explanation has not satisfied those who argue Holder has been far too soft on the financial industry. The Democratic operative who discussed the attorney general with Business Insider argued Holder's comments were a weak excuse for a "dereliction of duty."</p>
<p>"He, for some reason, believed that he was on the board of these banks and their long term stability was part of his job," said the operative. "For some bizarre reason, he said — it was on record — that he was considering the health of those financial institutions and the broader economy when he was considering those cases. And that was totally inappropriate and, frankly, a dereliction of duty."</p>
<p>Critics of Holder's perceived inaction with respect to Wall Street include elected officials of both parties. At <a href="http://thehill.com/policy/finance/217110-warren-shelby-agree-on-need-to-prosecute-bank-execs">a Senate hearing earlier this month</a>&nbsp;Sens. Elizabeth Warren (D-Massachusetts) and Richard Shelby (R-Alabama) both questioned why the crisis led the DOJ to pursue settlements against financial institutions, but not criminal prosecutions against individual executives.&nbsp;</p>
<p>"No corporation can break the law unless the individual within that corporation broke the law," Warren said. "Not a single senior executive at these banks have been criminally prosecuted."</p>
<p>"Something’s wrong with the Justice Department. People shouldn’t be able to … buy their way out of culpability," Shelby added.&nbsp;</p>
<p>Holder served throughout President Barack Obama's time in the White House. The Democratic operative argued that, even if Obama chose to take a more gentle approach toward the financial industry, Holder had an obligation to take action.</p>
<p>"I believe the president has failed in this area ... but he is a policy maker the president so ... he does have broader economic considerations to make," the operative said, arguing Obama has a better excuse than Holder for being concerned about the health of financial institutions. "But it is not the Attorney General's job to consider those things when deciding who to prosecute or not or what remedies to pursue."</p>
<p>With Holder set to resign, those who hoped to see the DOJ get tougher on Wall Street might see signs the next attorney general could address their concerns.&nbsp;</p>
<p>According to many insiders, Labor Secretary Tom Perez is a frontrunner to get the nomination from Obama. In his morning political briefing Friday, analyst Greg Valliere of the Potomac Research Group argued Perez is the "is the logical pick" and noted "he's already been confirmed by the Senate." Another Democratic strategist who spoke to Business Insider said Perez's Dominican heritage was fueling rumors he would be Obama's choice to succeed Holder.</p>
<p>"People in Washington, people in the White House are buzzing that the president is favoring picking a Latino for the position of attorney general and, specifically, favoring picking Tom Perez," the strategist said.</p>
<p>The Democratic operative said Perez was the only potential pick they have heard credible chatter about.</p>
<p>"I'm hearing all Perez," they said. &nbsp;</p>
<p>These rumors might upset Wall Streeters who were unhappy with efforts Perez spearheaded at the Department of Labor <a href="http://blogs.wsj.com/economics/2014/01/30/should-the-minimum-wage-be-raised-economists-weigh-in/">to raise the minimum wage</a> and <a href="http://www.forbes.com/sites/johnwasik/2013/08/23/why-wall-street-insurers-dont-want-fiduciary-duty/">require fiduciary duty</a>.</p>
<p>"He's&nbsp;proved he's got consumers' back at the DOL and I guess, if you're Wall Street that might be a bad thing," said the strategist. "But if youre 99% of people, that's a good thing."</p>
<p>However, the Democratic strategist argued the financial industry has nothing to fear from Perez. They characterized him as a "consensus builder" who knew it was important to get "business behind him" on these potentially contentious issues. They also suggested he would have a similar approach to Holder.</p>
<p>"Perez is exceptionally close to Eric Holder and would probably adopt the same style," said the strategist.&nbsp;</p>
<p><img style="float:right;" src="http://static3.businessinsider.com/image/5425cf78ecad04c219e14f56-535-401/preet-bharara-19.png" border="0" alt="Preet Bharara" width="480">Of course, President Obama is already halfway through his second term and polls show Democrat Hillary Clinton leading the 2016 field. And one person who is often discussed as a potential attorney general pick for Clinton is US Attorney Preet Bharara, who has earned a reputation as taking an aggressive approach on corporate crime. In fact, <a href="http://nypost.com/2014/09/26/wall-street-scared-new-attorney-general-could-be-preet/">according to the New York Post</a>, some Wall Streeters are already concerned Bharara could also be tapped by Obama to lead the DOJ.&nbsp;</p>
<p>Both of the Democrats who spoke to Business Insider argued Bharara's habit of ending up with his name in the headlines makes him an unlikely choice for Obama. However, the operative suggested Bharara's past experience as chief counsel to Sen. Chuck Schumer (D-New York), who worked alongside Clinton during her time representing New York in the Senate, could make him her pick.&nbsp;</p>
<p>"Very clearly he's angling to be her attorney general," the operative said of Bharara and Clinton. "Obviously Chuck is a big fan. Obviously, Hillary is well-versed in doing things to keep Chuck happy rather than be harrassed and irritated, so I'd imagine he could be her choice."</p>
<p>However, despite Bharara's reputation for being tough on Wall Street, multiple Democrats who have previously talked to Business Insider about the possibility he could lead the DOJ under Clinton argued he has only prosecuted small targets rather than leading financial industry executives. The strategist who discussed Perez with Business Insider argued Bharara's record with regard to the Street is largely "superficial." The other operative suggested this might actually add to Bharara's appeal for Clinton.&nbsp;</p>
<p>"For Hillary, it could make sense," said the operative. "He would give the appearance of reform and aggression against big actors without actually carrying it out."</p>
<p>Overall, many critics on the left seem pessimistic the Department of Justice will ever really get tough on Wall Street.</p>
<p>"I don't think Wall Street has anything to fear from a Hillary Clinton administration," the operative said, adding, "The previous six years should make clear to Wall Street that they have nothing to fear at all."</p><p><a href="http://www.businessinsider.com/wall-street-might-miss-eric-holder-when-hes-gone-2014-9#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/r-outgoing-justice-department-official-says-more-to-come-in-bank-probes-2014-9Outgoing DOJ Official: 'We're Not Done' With Wall Street Prosecutionshttp://www.businessinsider.com/r-outgoing-justice-department-official-says-more-to-come-in-bank-probes-2014-9
Wed, 10 Sep 2014 15:03:00 -0400Aruna Viswanatha
<p><img src="http://static2.businessinsider.com/image/5410a850eab8ea816a836aed-1200-600/tony-west-eric-holder-bank-of-america-1.jpg" border="0" alt="Tony West Eric Holder Bank of America"></p><p>Tony West, the third-ranking official at the U.S. Department of Justice, has a ready response for critics who question why few individuals have been charged for conduct tied to the financial crisis: just wait.</p>
<p>"We are not done, we are not finished," said West, who was responsible for crafting a series of multi-billion dollar civil settlements with top banks JPMorgan Chase, Citigroup, and Bank of America over shoddy mortgage bonds they sold in the run up to the 2008 crisis.</p>
<p>Those three settlements, each of which beat a record amount set by the prior one, did not include charges against any individuals at the banks.</p>
<p>"Simply because we have been successful in using particular tools doesn't mean that we have made any determinations about not using other tools," West, who is leaving the agency next week, said in an interview in his 5th floor conference room at DOJ headquarters.</p>
<p>He did not provide details about any additional actions the Justice Department may take against the banks or individuals.</p>
<p><img src="http://static3.businessinsider.com/image/5410a7456bb3f7f65a3f86b9-1200-600/tony-west-4.jpg" border="0" alt="Tony West">After spending more than five years at the Justice Department, including three years as head of the civil division, West leaves behind a legacy of nearly $37 billion in settlements that won him praise as a master negotiator who forced substantial penalties on banks that contributed to the crisis.</p>
<p>But his work on the settlements also raised questions across the political spectrum about why individuals did not face related charges and how the penalties were calculated. Bank lawyers privately complained there was little explanation of why the government sought the numbers it did.</p>
<p>Senator Elizabeth Warren, a Democrat from Massachusetts, this week again hammered financial regulators for not referring more potentially criminal cases, and slammed the Justice Department's settlements.</p>
<p><img class="float_left" src="http://static3.businessinsider.com/image/5410a594eab8ea0a60836af3-1200-924/elizabeth-warren-35.jpg" border="0" alt="elizabeth warren">"No corporation can break the law unless an individual within that corporation broke the law," she said at a Senate Banking Committee hearing on Tuesday.</p>
<p>"Yet, despite the misconduct at these banks that generated tens of billions of dollars in settlement payments by the companies, not a single senior executive at these banks has been criminally prosecuted."</p>
<p>West, in the interview, defended the settlements, pointing out that the government could not have obtained the consumer relief included in the settlements if it had gone to court and litigated the cases. He also said that no bank asked for a detailed explanation of the calculation of the penalties to be included in settlement documents.</p>
<p>Further, West said the Justice Department's approach to penalties has been generally affirmed by U.S. District Judge Jed Rakoff, an outspoken critic of light enforcement actions involving Wall Street.</p>
<p>In July, as Bank of America was in negotiations with West's team, Rakoff separately ordered the bank to pay a $1.27 billion penalty for fraud over shoddy mortgages sold by the former Countrywide Financial Corp, which Bank of America bought during the crisis. It gave credence to the government's theories of penalties the banks were being forced to pay under the law at issue, FIRREA.</p>
<p>"Judge Rakoff is, as everybody knows, an incredibly brilliant judge, and the fact that he saw it in very similar ways as we saw it, certainly makes you feel like you are on the right track," West said.</p>
<p>West, who previously mounted unsuccessful bids for local office in his home state of California, said he would not rule out a return to government. "I hope I'll have the opportunity at some point in the future to have the chance to serve the public again in some way," he said.</p>
<p>He declined to comment on his next plans, but Bloomberg reported late Tuesday that West is expected to join PepsiCo Inc. as its new general counsel. Spokesmen for the Justice Department and for Pepsi declined comment.</p>
<p>&nbsp;</p>
<p>(Reporting by Aruna Viswanatha, with additional reporting by Anjali Athavaley; Editing by Kare Van Hall and Chizu Nomiyama)</p><p><a href="http://www.businessinsider.com/r-outgoing-justice-department-official-says-more-to-come-in-bank-probes-2014-9#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/ex-cybersecurity-director-timothy-defoggi-convicted-on-child-pornography-charges-2014-8A Former Federal Cyber Security Director Was Just Convicted On Child Pornography Chargeshttp://www.businessinsider.com/ex-cybersecurity-director-timothy-defoggi-convicted-on-child-pornography-charges-2014-8
Tue, 26 Aug 2014 16:02:00 -0400Colin Campbell
<p><img style="float:right;" src="http://static4.businessinsider.com/image/53fcf333ecad0486168b456d-480-/hhs-logo-1.png" border="0" alt="hhs logo" width="480"></p><p>A former acting director of cyber security at the Department of Health and Human Services was convicted on federal child pornography charges on Tuesday, according to the Department of Justice.</p>
<p>The details of the evidence presented against Timothy DeFoggi, the former acting director, are gruesome and include an apparent plot to enact some of his violent "fantasies" in the real world.</p>
<p>Federal prosecutors said DeFoggi was arrested as part of an investigation into three child pornography websites the FBI shut down in 2012. DeFoggi registered as a member of at least one of these websites and "solicited child pornography from other members, and exchanged private messages with other members where he expressed an interest in the violent rape and murder of children."</p>
<p>He "even suggested meeting one member in person to fulfill their mutual fantasies to violently rape and murder children."</p>
<p>It was not immediately clear to what extent DeFoggi's participation in the websites overlapped with his work at the Health Department. However, a <a href="http://www.hhs.gov/budget/fy2014/fy2014-phssef.pdf">government document</a> detailing funding estimates for the 2014 fiscal year listed a "Tim Defoggi" as the head of "OS IT Security Operations" and indicated he reported directly to the department's chief information security officer.</p>
<p>DeFoggi's sentencing is scheduled for <span data-term="goog_1833229631">November.</span></p>
<p><span data-term="goog_1833229631"><strong>Update (6:04 p.m.):</strong> <em>An HHS official told Business Insider that DeFoggi was part of the department from 2008 until the start of 2014: "Mr. DeFoggi was employed at HHS, first at the Indian Health Service as a Supervisory IT Specialist from September 2008 until March 2012, and then at the HHS Office of the Assistant Secretary for Administration as a Lead IT Specialist from March 2012 until January 2014."</em><br></span></p><p><a href="http://www.businessinsider.com/ex-cybersecurity-director-timothy-defoggi-convicted-on-child-pornography-charges-2014-8#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/doj-investigating-missing-irs-emails-2014-7The Department Of Justice Is Investigating The Missing IRS Emailshttp://www.businessinsider.com/doj-investigating-missing-irs-emails-2014-7
Wed, 16 Jul 2014 17:26:52 -0400Hunter Walker
<p><img style="float:right;" src="http://static3.businessinsider.com/image/53c6ed88ecad043f7cf996b5-480-/irs-building-10.jpg" border="0" alt="IRS Building" width="480" /></p><p>There is a federal investigation into lost emails from former IRS official Lois Lerner, the key figure in the agency's alleged targeting of conservative groups.</p>
<p>The Wall Street Journal <a href="http://stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-580462/">examined prepared testimony</a> Deputy Attorney General&nbsp;James Cole is set to deliver at a hearing before the House Oversight and Government Reform Committee&nbsp;on Thursday. According to the Journal, Cole will confirm the Department of Justice is "investigating the circumstances of the lost emails from [former IRS official Lois Lerner's] computer."</p>
<p>Lerner lead the IRS division that reviewed applications for tax-exempt status. The IRS&nbsp;<a href="http://www.businessinsider.com/darrell-issa-irs-scandal-jay-carney-obama-2013-6" target="_blank">outraged conservatives last year</a>&nbsp;after admitting applications for tax exemption from certain conservative and Tea Party-backed groups received extra scrutiny.&nbsp;</p>
<p>The IRS has <a href="http://www.businessinsider.com/irs-chief-criminal-wrongdoing-and-missing-emails-2014-6">maintained over two years of emails</a> from Lerner and other officials were lost when a hard drive crashed. Republicans <a href="http://www.businessinsider.com/irs-chief-criminal-wrongdoing-and-missing-emails-2014-6">have expressed doubt </a>about that explanation.</p>
<p><span><span>&nbsp;</span></span></p>
<p><span>&nbsp;</span></p><p><a href="http://www.businessinsider.com/doj-investigating-missing-irs-emails-2014-7#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/preet-bhararas-chicken-little-moment-2014-6This Is The Moment Wall Street Should've Known The Feds Were Sick Of Its Shenaniganshttp://www.businessinsider.com/preet-bhararas-chicken-little-moment-2014-6
Thu, 05 Jun 2014 10:25:00 -0400Linette Lopez
<p><img style="float:right;" src="http://static6.businessinsider.com/image/539074f969bedd305b6ba573-1200-924/preet-bharara-9.png" border="0" alt="preet bharara" /></p><p>Last month federal regulators did the once unthinkable and criminally charged Credit Suisse for helping its clients evade taxes. Now the government is going after France's biggest bank, BNP Paribas.</p>
<p><span style="font-size: 15px; line-height: 1.5em;">Reports indicate that over the next few weeks it faces a $10 billion fine and criminal charges for doing business with in sanctioned countries such as Iran.</span></p>
<p>Wall Street should've seen this coming.</p>
<p>Back in March, Preet Bharara, the U.S. district attorney for New York known for taking down some big names on Wall Street for insider trading, made a telling speech.&nbsp;</p>
<p>He warned Wall Street that he was sick and tired of seeing big banks admit to civil charges and pay fines for their million-dollar malfeasance only to then go on business as usual. For the last decade, banks have argued that prosecuting them criminally will result in their collapse. Bharara called this their "Chicken Little routine."</p>
<p><a href="http://www.justice.gov/usao/nys/pressspeeches/2014/SIFMARemarks2014.php">Here's the part where Bharara disclosed</a> that he had had enough:</p>
<p style="padding-left: 30px;">Companies, especially financial institutions, will do almost anything to avoid a tough enforcement action and therefore have a natural and powerful incentive to make prosecutors believe that death or dire consequences await on the other side of such an action &ndash; to dissuade the prosecutor from taking the fateful step of filing a criminal charge, even a deferred charge. And in that dynamic also lies a powerful incentive to exaggerate.</p>
<p style="padding-left: 30px;">In meetings with senior executives and their counsel&mdash;and in written submissions also&mdash;I have heard assertions made with great force and passion that if we take any criminal action, the skies will darken; the oceans will rise; nuclear winter will be upon us; and the world as we know it will end...</p>
<p style="padding-left: 30px;">When these arguments are made to me and my staff, we take them seriously&mdash;like we take all arguments and submissions.<strong> But we also take them, increasingly, with grains of salt, and make our own independent judgment about what actually is likely to happen. What I have found typically is that, in reality, as we had suspected, the sky does not fall...</strong></p>
<p style="padding-left: 30px;"><strong>And so, this repeated Chicken Little routine, I will tell you, begins to wear thin.</strong> And the result is that we view with more and more skepticism and with more and more doubt all the breathless claims of catastrophic consequences made by companies both large and small.</p>
<p>Over at Bloomberg, <a href="http://www.bloomberg.com/news/2014-06-05/dimon-s-raise-haunts-bnp-paribas-as-u-s-weighs-10-billion-fine.html">Greg Farrell and Tiffany Karry report</a> that Bharara started to come around to this way of thinking last fall, when he wanted to prosecute JPMorgan for its decades long neglect to report Bernie Madoff's fraud. JPM was the Ponzi schemers banker, and some inside the company knew that something was afoot &mdash; they <a href="http://www.businessinsider.com/jpm-knew-madoff-was-a-fraud-said-nothing-2014-1">pulled the bank's money from Madoff before reporting the issue</a> to the Feds.<a href="http://www.businessinsider.com/jpm-knew-madoff-was-a-fraud-said-nothing-2014-1"></a></p>
<p>That upset Bharara.</p>
<p>But when JPM CEO Jamie Dimon got a 74% raise to $20 million afterward for guiding the company through the storm, Bharara was livid. Dimon's pay had been cut in 2012, when traders lost $6 billion on a single trade. The whole matter said something about the bank's priorities.</p>
<p>It made Bharara think back to when Dimon had personally told him that criminal charges for Madoff would destroy JPM.</p>
<p>Wall Street as a whole has been telling this story because once upon a time the sky did fall. When the Feds prosecuted Arthur Andersen for its role in disguising Enron's fraud, the company collapsed in 2002.</p>
<p>This time around Credit Suisse, however, did not collapse. And though the <a href="http://www.usatoday.com/story/money/business/2014/06/04/france-defends-bnp-paribas/9951793/">French are upset</a> that American regulators are going after BNP, law enforcement officials are betting that it won't collapse either.</p>
<p>In his speech, Bharara said that the pendulum had swung too far one way &mdash; against prosecuting Wall Street criminally &mdash; after Arther Andersen. If the pendulum is in fact swinging in the opposite direction &mdash; toward handing out criminal charges &mdash; the next thing in its way could be prosecuting individuals.</p>
<p>It's quite likely that Wall Street has always known that.</p><p><a href="http://www.businessinsider.com/preet-bhararas-chicken-little-moment-2014-6#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/investigation-finds-albuquerque-police-use-excessive-force-2014-4Justice Department Finds 'Patterns Of Excessive Force' In The Albuquerque Police Departmenthttp://www.businessinsider.com/investigation-finds-albuquerque-police-use-excessive-force-2014-4
Thu, 10 Apr 2014 15:50:24 -0400Russell Contreras
<p><img style="float:right;" src="http://static4.businessinsider.com/image/533c39ececad04881f0a1aaf-480-/arizona-15.jpg" border="0" alt="Arizona Police" width="480" /></p><p>The U.S. Justice Department on Thursday said institutional reform centered on more training and tools for officers is needed to curb the "patterns of excessive force" that were turned up by a civil investigation of the Albuquerque Police Department.</p>
<p>After more than a year of reviewing hundreds of cases handled by the Police Department, the federal agency found that officers too frequently used deadly force on people "who posed a minimal threat" and used a higher level of force too often on those with mental illness. In many of the cases, that use of force violated constitutional rights.</p>
<p>Acting Assistant Attorney General of DOJ Civil Rights Division Jocelyn Samuels said the investigation was thorough and that it became clear the problems within the Police Department are systemic.</p>
<p>"The reforms we are proposing ... are going to result in the kinds of structures that will over time create a change in the culture," she said. "It starts with commitment from the top."</p>
<p>She acknowledged that changes will not happen overnight.</p>
<p>Community members voiced concerns during Thursday's announcement that recommendations have been made in the past with city leaders failing to take action.</p>
<p>DOJ officials planned to brief Mayor Richard Berry, police Chief Gorden Eden and other officials on the findings Thursday afternoon.</p>
<p>The announcement followed an investigation into allegations of civil rights violations and excessive force. The department has faced criticism over 37 shootings by officers since 2010.</p>
<p>Last week, Berry asked the federal agency to expedite its review and help overhaul the city's police force. His request followed a violent protest last month in response to the shooting death of a homeless man who had threatened to kill officers. The man was gathering his belongings and turning away when officers opened fire, helmet camera video showed.</p>
<p>Until Thursday's announcement, federal officials released few details of the Albuquerque investigation but conducted hundreds of interviews with officials and residents.</p>
<p>Scrutiny of the Albuquerque force is one of 15 investigations of police departments launched during President Barack Obama's first term.</p>
<p>___</p>
<p>Follow Russell Contreras on Twitter at http://twitter.com/russcontreras</p>
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<p><img class="nc_pixel" src="http://pixel.newscred.com/px.gif?key=YXJ0aWNsZT0yMDk5YTAwNGViZTE4ZjhhNzM1MmNiMWZkMGYzY2E3MSZub25jZT05YmYyNzI2OC1hODk1LTRlMGYtYTkyMy01YTlkOWJkYWY1YmImcHVibGlzaGVyPThjMDBmYmVlNjFkNWJjZjBjNjA5MmQ4YjkyZWJiY2Ex" border="0" alt="" width="1" height="1" /></p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/video-of-albuquerque-police-shooting-homeless-man-2014-4" >This Horrifying Video Of Albuquerque Cops Killing A Homeless Man May Be A Sign Of A Much Bigger Problem</a></strong></p>
<p><a href="http://www.businessinsider.com/investigation-finds-albuquerque-police-use-excessive-force-2014-4#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/toyota-to-pay-12-billion-in-unintended-acceleration-case-2014-3Toyota Will Pay $1.2 Billion To Settle Criminal Investigation Over Unintended Acceleration Caseshttp://www.businessinsider.com/toyota-to-pay-12-billion-in-unintended-acceleration-case-2014-3
Wed, 19 Mar 2014 10:12:28 -0400Alex Davies
<p><img style="float:right;" src="http://static6.businessinsider.com/image/5329a359eab8ea5b39be2961-744-558/toyota-camry-2.jpg" border="0" alt="Toyota Camry" /></p><p>Toyota will pay a $1.2 billion financial penalty and fully admit wrongdoing after a widespread vehicle recall in 2009-2010 led to a criminal investigation by the U.S. Justice Department.</p>
<p>The investigation found Toyota intentionally concealed information about the incidents, and purposefully misled the public about the underlying safety issues.</p>
<p>The 2009-2010 recall was triggered by unintended acceleration issues.</p>
<p>The $1.2 billion charge will be paid in after-tax charges after earnings, and is is the largest criminal penalty ever imposed on an American automaker.</p>
<p>It's appropriate,&nbsp;<a href="http://www.justice.gov/iso/opa/ag/speeches/2014/ag-speech-140319.html" target="_blank">Attorney General Eric Holder said in an announcement</a> this morning, because "Toyota's conduct was shameful. It showed a blatant disregard for systems and laws designed to look after the safety of consumers."</p>
<p>In a statement, Toyota North America's chief legal officer Christopher P. Reynolds said "At the time of these recalls, we took full responsibility for any concerns our actions may have caused customers, and we rededicated ourselves to earning their trust. In the more than four years since these recalls, we have gone back to basics at Toyota to put our customers first.&rdquo;</p>
<p>As part of the settlement, announced by&nbsp; this morning, Toyota will also "submit to rigorous review by an independent monitor that will examine and assess" how the automaker reports safety issues to the public and regulators.</p>
<p>In its last fiscal quarter, Toyota reported a profit of $5.2 billion, <a href="http://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=2&amp;cad=rja&amp;uact=8&amp;ved=0CDIQFjAB&amp;url=http%3A%2F%2Fwww.huffingtonpost.ca%2F2014%2F03%2F19%2Ftoyota-sudden-acceleration_n_4992272.html&amp;ei=-qMpU7LYKeqd0AG8rIHwAw&amp;usg=AFQjCNHFxBYEVOCCUy8BjUAiA7kp1H0h9w&amp;bvm=bv.62922401,d.dmQ" target="_blank">according to the AP</a>.</p><p><a href="http://www.businessinsider.com/toyota-to-pay-12-billion-in-unintended-acceleration-case-2014-3#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/debo-adegbile-vote-fails-obama-doj-mumia-abu-jamal-2014-3Obama Issues Furious Statement After Senate Democrats Vote Down His Controversial Nomineehttp://www.businessinsider.com/debo-adegbile-vote-fails-obama-doj-mumia-abu-jamal-2014-3
Wed, 05 Mar 2014 14:01:00 -0500Brett LoGiurato
<p><img src="http://static1.businessinsider.com/image/5312602369bedd192ef07867-800-/ap335056241408.jpg" border="0" alt="Barack Obama tense" width="800" /></p><p></p>
<p>Eight Senate Democrats on Wednesday helped vote down&nbsp;<span>President Barack Obama's controversial nominee to become assistant attorney general for the Justice Department's Civil Rights Division. </span></p>
<p>The vote against <span>Debo Adegbile clearly</span>&nbsp;infuriated Obama. It was the first time one of his nominees failed to be <a href="http://www.businessinsider.com/senate-nuclear-option-obama-harry-reid-election-2014-2013-11" target="_blank">confirmed since the Senate rules changed</a> to allow nominees to be confirmed by simple majority vote last November. Since Democrats control the Senate, this change, known as the "nuclear option," was expected to forge a clear path for Obama's nominees.&nbsp;</p>
<p><span>"The Senate&rsquo;s failure to confirm Debo Adegbile to lead the Civil Rights Division at the Department of Justice is a travesty based on wildly unfair character attacks against a good and qualified public servant," Obama said in an angry written statement sent out Wednesday.&nbsp;</span><span style="font-size: 15px; line-height: 1.5em;">"Mr. Adegbile&rsquo;s qualifications are impeccable. He represents the best of the legal profession, with wide-ranging experience, and the deep respect of those with whom he has worked. His unwavering dedication to protecting every American&rsquo;s civil and Constitutional rights under the law &mdash; including voting rights &mdash; could not be more important right now."</span></p>
<p><span>Eight Senate Democrats joined Republicans in voting against Adegbile &mdash; Sens.&nbsp;<span>Chris Coons (Del.), Bob Casey (Pa.), Mark Pryor (Ark.), Heidi Heitkamp (N.D.), Joe Manchin (W.V.), Joe Donnolly (Ind.), John Walsh (Mont.), and Senate Majority Leader Harry Reid (Nev.). Reid voted against the nomination to be able to bring it up for consideration again at a later date.</span></span></p>
<p><span><span>Adegbile's nomination came under intense scrutiny because of his history as a&nbsp;<span>legal counsel on the NAACP's Legal Defense Fund &mdash; particularly his involvement in a case involving&nbsp;Mumia Abu-Jamal. <span>The NAACP's fund helped overturn Abu-Jamal's death sentence</span>&nbsp;for the 1981 murder of&nbsp;<span>Philadelphia police officer Daniel Faulkner.</span></span></span></span></p>
<p><span><span><span><span>In 2009, Adegbile filed a court<span>&nbsp;brief arguing Abu-Jamal was sentenced by a discriminatory jury. A judge later determined the appeal had merit. Adegbile also was on the team representing Abu-Jamal when prosecutors again sought the death penalty.&nbsp;</span></span></span></span></span></p>
<p><span><span><span><span>Abu-Jamal's original 1981 case did have racially charged elements. One female stenographer reportedly heard the trial judge say to the prosecution he was <a href="http://www.phillymag.com/news/2011/05/02/why-mumia-abu-jamal-should-be-released-from-prison-now/" target="_blank">going to help them "fry that n&mdash;."</a>&nbsp;Abu-Jamal went on to become something of an icon among critics of the death penalty and police brutality.&nbsp;</span></span></span></span></p>
<p>Most of the Democratic senators who ended up voting against Adegbile were tight-lipped. Spokespeople for six of the seven (not counting Reid) did not respond to requests for comment. Coons, however, delivered a lengthy explanation of why he opposed the nomination.&nbsp;</p>
<p><span>"There is no question that Mr. Adegbile has had a significant and broad career as a leading civil rights advocate, and would be an asset to the Justice Department, but at a time when the Civil Rights Division urgently needs better relations with the law enforcement community, I was troubled by the idea of voting for an Assistant Attorney General for Civil Rights who would face such visceral opposition from law enforcement on his first day on the job," Coons said, in part.&nbsp;</span></p>
<p><span>Coons added it was the toughest vote he's taken as a member of the Senate.</span></p><p><a href="http://www.businessinsider.com/debo-adegbile-vote-fails-obama-doj-mumia-abu-jamal-2014-3#comments">Join the conversation about this story &#187;</a></p>